DexCom (NASDAQ:DXCM) Stock Price Down 5.3% - Here's Why

Key Points

• DexCom shares experienced a significant decline of 5.3% on Monday, trading at about $77.88, amid a 78% drop in trading volume compared to the average.
• Despite the stock's recent performance, analysts remain optimistic, with target prices ranging from $89.00 to $100.00 and an average rating of "Moderate Buy."
• Insider activity included sales of shares by executives, indicating a potential 0.53% decrease in ownership for EVP Michael Jon Brown after selling 500 shares.

Shares of DexCom, Inc. (NASDAQ:DXCM - Get Free Report) were down 5.3% on Monday . The stock traded as low as $77.78 and last traded at $77.88. Approximately 848,878 shares were traded during trading, a decline of 78% from the average daily volume of 3,857,045 shares. The stock had previously closed at $82.26.

Wall Street Analyst Weigh In

Several research firms have recently weighed in on DXCM. Mizuho lifted their target price on shares of DexCom from $95.00 to $100.00 and gave the company an "outperform" rating in a report on Wednesday, July 16th. The Goldman Sachs Group initiated coverage on shares of DexCom in a research report on Friday, May 30th. They issued a "buy" rating and a $104.00 price objective for the company. Morgan Stanley increased their target price on shares of DexCom from $82.00 to $89.00 and gave the stock an "equal weight" rating in a research note on Tuesday, July 15th. Robert W. Baird cut their price target on DexCom from $115.00 to $105.00 and set an "outperform" rating for the company in a research note on Friday, May 2nd. Finally, Wall Street Zen cut DexCom from a "strong-buy" rating to a "buy" rating in a report on Sunday, August 10th. Three research analysts have rated the stock with a Strong Buy rating, fifteen have issued a Buy rating and four have assigned a Hold rating to the stock. Based on data from MarketBeat.com, the company currently has an average rating of "Moderate Buy" and a consensus target price of $99.89.

DexCom Stock Down 5.8%

The company has a current ratio of 1.52, a quick ratio of 1.35 and a debt-to-equity ratio of 0.48. The business has a fifty day simple moving average of $82.81 and a two-hundred day simple moving average of $79.77. The company has a market cap of $30.39 billion, a PE ratio of 53.82, a price-to-earnings-growth ratio of 1.72 and a beta of 1.43.

DexCom (NASDAQ:DXCM - Get Free Report) last issued its earnings results on Wednesday, July 30th. The medical device company reported $0.48 EPS for the quarter, beating analysts' consensus estimates of $0.45 by $0.03. The business had revenue of $1.16 billion during the quarter, compared to analysts' expectations of $1.13 billion. DexCom had a net margin of 13.29% and a return on equity of 30.41%. The company's quarterly revenue was up 15.2% compared to the same quarter last year. During the same period in the prior year, the business earned $0.43 earnings per share. DexCom has set its FY 2025 guidance at EPS. As a group, equities research analysts predict that DexCom, Inc. will post 2.03 earnings per share for the current year.

Insider Buying and Selling

In other news, EVP Michael Jon Brown sold 500 shares of the company's stock in a transaction that occurred on Friday, August 15th. The stock was sold at an average price of $80.29, for a total value of $40,145.00. Following the completion of the sale, the executive vice president directly owned 94,102 shares in the company, valued at $7,555,449.58. This represents a 0.53% decrease in their ownership of the stock. The transaction was disclosed in a document filed with the Securities & Exchange Commission, which is available at this link. Also, Director Mark G. Foletta sold 2,750 shares of DexCom stock in a transaction that occurred on Friday, August 15th. The stock was sold at an average price of $81.06, for a total value of $222,915.00. Following the transaction, the director owned 51,121 shares in the company, valued at approximately $4,143,868.26. The trade was a 5.10% decrease in their position. The disclosure for this sale can be found here. In the last quarter, insiders have sold 21,906 shares of company stock valued at $1,832,451. 0.32% of the stock is currently owned by company insiders.

Institutional Investors Weigh In On DexCom

A number of hedge funds have recently modified their holdings of the company. Andra AP fonden acquired a new stake in DexCom during the second quarter worth $26,000. Twin Peaks Wealth Advisors LLC purchased a new position in shares of DexCom during the 2nd quarter worth $26,000. Golden State Wealth Management LLC increased its position in shares of DexCom by 211.2% during the 1st quarter. Golden State Wealth Management LLC now owns 389 shares of the medical device company's stock worth $27,000 after purchasing an additional 264 shares during the last quarter. Zions Bancorporation National Association UT purchased a new stake in DexCom in the 1st quarter valued at about $27,000. Finally, Optiver Holding B.V. purchased a new stake in DexCom in the 4th quarter valued at about $33,000. Hedge funds and other institutional investors own 97.75% of the company's stock.

About DexCom

DexCom, Inc, a medical device company, focuses on the design, development, and commercialization of continuous glucose monitoring (CGM) systems in the United States and internationally. The company provides its systems for use by people with diabetes, as well as for use by healthcare providers. Its products include Dexcom G6 and Dexcom G7, integrated CGM systems for diabetes management; Dexcom Share, a remote monitoring system; Dexcom Real-Time API, which enables authorized third-party software developers to integrate real-time CGM data into their digital health apps and devices; and Dexcom ONE, that is designed to replace finger stick blood glucose testing for diabetes treatment decisions.

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